Sun Belt Regional Bank Could be About to Heat Up

by Sam Collins | February 26, 2014 1:22 am

Regions Financial Corp. (RF[1]) — This financial holding company has almost 1,700 banking offices in 16 states mostly in the Sun Belt region. On Feb. 13, S&P raised its opinion to “strong buy” from “buy,” and kept its one-year price target at $12. S&P analysts look for revenues to grow faster than expenses in 2014, and forecast “above-peer” loan growth of 3.9% and revenue growth of 4.5%.

Consensus estimates are for earnings of $0.86 per share in 2014, up from $0.82 in 2013, and $0.93 in 2015. The company pays an annual dividend of $0.12 for a current yield of 1.2%.

Technically, RF has been in a powerful bull market since March 2012. In December 2013, it broke from a bullish triangle at $10 and ran to a six-year high of $11.08 in January.

A round of profit-taking dropped the stock to its bullish support line, where it reversed and rallied above its 50-day moving average at $10.16. This pop was supported by buy signals from my proprietary indicator, the Collins-Bollinger Reversal (CBR), and MACD, as well as high volume. Buy RF as an intermediate-term trade to $12. 

RF Stock
Click to Enlarge
Chart Key[2]

  1. RF:
  2. [Image]:

Source URL:
Short URL: